Zydus Life Settles $120M Patent Dispute with Astellas

India’s Zydus Lifesciences and its U.S. unit have agreed to pay $120 million to Astellas Pharma to resolve a patent dispute over the Japanese company’s bladder disorder drug, Mirabegron. Under the settlement, Zydus will also pay a pre-paid per-unit licensing fee for sales of its generic version in the U.S. until September 2027, allowing it to continue marketing the drug in the American market.

The terms of the agreement beyond the financial settlement remain confidential. Following the announcement, Zydus shares rose by as much as 1.3%, reflecting positive investor sentiment regarding its continued access to the U.S. market for the generic drug.

This move follows a similar settlement by local peer Lupin, which agreed to pay $90 million to Astellas. Analysts at Citi noted that these settlements could delay the entry of other generic competitors in the U.S., giving Zydus and Lupin a period of limited competition for Mirabegron.

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